Question 1

A product line comprises all products from a single manufacturer.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the best example of a good?

Accepted Answer

A)  e-learning storyboard 
B)  digital music 
C)  air travel 
D)  life insurance 
E)  a pair of shoes 
A)  e-learning storyboard 
B)  digital music 
C)  air travel 
D)  life insurance 
E)  a pair of shoes

Question 3

Shopping products are particular brands that the buyer especially wants and will seek out,regardless of location or price.

Accepted Answer

A) True 
 B)False

Question 4

Price elasticity is a measure of the sensitivity of ________ to changes in price.

Accepted Answer

A)  variable cost 
B)  demand 
C)  income 
D)  yield 
E)  total cost 
A)  variable cost 
B)  demand 
C)  income 
D)  yield 
E)  total cost

Question 5

Product mix is a complete list of all products that a company offers for sale.

Accepted Answer

A) True 
 B)False

Question 6

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

Accepted Answer

A) True 
 B)False

Question 7

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

Accepted Answer

A)  value-based 
B)  freemium 
C)  optimal 
D)  auction 
E)  penetration 
A)  value-based 
B)  freemium 
C)  optimal 
D)  auction 
E)  penetration

Question 8

________ refers to using the brand of existing products on products in a different new category.

Accepted Answer

A)  Brand filling 
B)  Line extension 
C)  Line filling 
D)  Brand stretching 
E)  Brand extension 
A)  Brand filling 
B)  Line extension 
C)  Line filling 
D)  Brand stretching 
E)  Brand extension

Question 9

Penetration pricing doesn't work if ________.

Accepted Answer

A)  the company can't sustain the low price levels profitably 
B)  there is some level of competition in the market 
C)  a company is entering a market that is totally new 
D)  the customers in a market are highly price sensitive 
E)  the product is characterized by high extent of price elasticity 
A)  the company can't sustain the low price levels profitably 
B)  there is some level of competition in the market 
C)  a company is entering a market that is totally new 
D)  the customers in a market are highly price sensitive 
E)  the product is characterized by high extent of price elasticity

Question 10

Dynamic pricing refers to offering temporary price reductions to stimulate sales.

Accepted Answer

A) True 
 B)False

Question 11

Absco computers introduced a low cost,cloud-based storage service.The company adopted a unit-based pricing for the product and many small businesses found the product to be very effective in reducing their storage costs.The sale of the product has increased swiftly in the recent months and is at an all time high.The product is presently in the ________ stage of product lifecycle.

Accepted Answer

A)  maturity 
B)  growth 
C)  saturation 
D)  research 
E)  introduction 
A)  maturity 
B)  growth 
C)  saturation 
D)  research 
E)  introduction

Question 12

A software firm buys 250 personal computers for a new facility that it is opening.This is an example of an expense item.

Accepted Answer

A) True 
 B)False

Question 13

Variable costs are not dependent on the magnitude of production.

Accepted Answer

A) True 
 B)False

Question 14

Choose ten different products from ten different industries.Classify each of these products according to the product life cycle stage they currently belong to.

Accepted Answer

Products that are just launched and have

Question 15

Select twenty products of your choice.Classify these products as goods and services.

Accepted Answer

Products contain both tangible and intan

Question 16

License is an agreement to produce and market another company's product in exchange for a royalty or fee.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Accepted Answer

A)  cost-based pricing 
B)  participative pricing 
C)  penetration pricing 
D)  optimal pricing 
E)  value-based pricing 
A)  cost-based pricing 
B)  participative pricing 
C)  penetration pricing 
D)  optimal pricing 
E)  value-based pricing

Question 18

Compare and contrast auctions and participative pricing.

Accepted Answer

In an auction,the seller doesn't set a f

Question 19

Capital items are less expensive than expense items.

Accepted Answer

A) True 
 B)False

Question 20

________ is a computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives.

Accepted Answer

A)  Value-based pricing 
B)  Cost-based pricing 
C)  Freemium pricing 
D)  Optimal pricing 
E)  Participative pricing 
A)  Value-based pricing 
B)  Cost-based pricing 
C)  Freemium pricing 
D)  Optimal pricing 
E)  Participative pricing

A product line comprises all products from a single manufacturer.

Which of the following is the best example of a good?

Shopping products are particular brands that the buyer especially wants and will seek out,regardless of location or price.

Price elasticity is a measure of the sensitivity of ________ to changes in price.

Product mix is a complete list of all products that a company offers for sale.

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

________ refers to using the brand of existing products on products in a different new category.

Penetration pricing doesn't work if ________.

Dynamic pricing refers to offering temporary price reductions to stimulate sales.

A software firm buys 250 personal computers for a new facility that it is opening.This is an example of an expense item.

Variable costs are not dependent on the magnitude of production.

Choose ten different products from ten different industries.Classify each of these products according to the product life cycle stage they currently belong to.

Select twenty products of your choice.Classify these products as goods and services.

License is an agreement to produce and market another company's product in exchange for a royalty or fee.

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Compare and contrast auctions and participative pricing.

Capital items are less expensive than expense items.

________ is a computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 14: Product and Pricing Strategies

A product line comprises all products from a single manufacturer.

Which of the following is the best example of a good?

Shopping products are particular brands that the buyer especially wants and will seek out,regardless of location or price.

Price elasticity is a measure of the sensitivity of ________ to changes in price.

Product mix is a complete list of all products that a company offers for sale.

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

________ refers to using the brand of existing products on products in a different new category.

Penetration pricing doesn't work if ________.

Dynamic pricing refers to offering temporary price reductions to stimulate sales.

A software firm buys 250 personal computers for a new facility that it is opening.This is an example of an expense item.

Variable costs are not dependent on the magnitude of production.

Choose ten different products from ten different industries.Classify each of these products according to the product life cycle stage they currently belong to.

Select twenty products of your choice.Classify these products as goods and services.

License is an agreement to produce and market another company's product in exchange for a royalty or fee.

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Compare and contrast auctions and participative pricing.

Capital items are less expensive than expense items.

________ is a computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters